Railsbank secures $70 million to expand embedded finance offerings

By Megha Bhattacharya

Railsbank has raised $70 million, as it continues to expand its key products on a global scale, strengthening its position as a global Embedded Finance platform. The latest fundraise was led by Anthos Capital and attracted a range of investors including Central Capital (VC arm of the Indonesian privately held bank), Cohen and Company (the founder of Bancorp), and Chris Adelsbach’s new fund Outrun Ventures. Existing investors also participated.

“Think of Railsbank as being the financial services layer of the Internet,” said Nigel Verdon, CEO and co-founder of Railsbank. “We are transforming the finance industry in the same way that Apple did to the music industry when they created iTunes. Too much of the current global financial services system is made up of aging legacy technology and operational processes, making it unnecessarily complicated, highly expensive and nearly impossible for innovators to create the ‘Spotify’ of financial services.

“We are changing that at Railsbank by combining our ‘zero legacy’ platform with deconstructing financial services into individual digital components. Because we have created these individual financial components, our customers can easily embed financial products directly into their own customer experiences at exactly the point where consumers and SMEs need financial services, not at the point when traditional providers forced them to. This will finally make financial services customer centric and inclusive, rather than the situation today which is institution centric and exclusive.”

Railsbank will use the funds to further expand its various Embedded Finance products (Banking as a Service, Cards as a Service, and Credit as a Service) across Europe, the Asia Pacific and North America, helping its customers remodel and democratise access to the financial services industry.